Together Let s Build Airline Retailing Author: Valerie Courtas, Manager NDC Implementation 2018 International Air Transport Association. All rights reserved.
Executive Summary 2017 was a successful year for the NDC program with a rise in the number of NDC deployments showing clearly that NDC is being embraced by the industry. At the end of 2017 50 NDC live deployments had occurred and more carriers plan to follow suit in 2018 and beyond. Of 196 airlines IATA surveyed in April, 113 planned to deploy or already had deployed the standard, up from 86 in a similar survey in spring 2016. What were the highlights in 2017? 23 new airlines delivered NDC live transactions: A3, UU, AC, AF, GP, OS, SN, GY, ET, EY, AY, FT, KL, KE, SV, 3U, XG, XQ, LX, TK, UA, WS, SU 10 IT providers and 7 aggregators went through the NDC certification process All major GDSs have been NDC certified as aggregators and IT providers and publicly announced that they will reach level 3 of certification on the distribution side in 2018 (Travelport reached level 3 in December 2017) One of the largest metasearch firms is live on NDC: Skyscanner Hogg Robinson Group, one of the largest travel management companies (TMCs) worldwide is live on NDC. Other large TMCs have made press announcements indicating that they will access NDC content in 2018 First live deployments using the latest version of the NDC schemas PADIS Publication 17.2 released last September. The industry believes this release will serve as a new baseline on which the next versions will build upon 3 NDC implementers forums were delivered by IATA with industry stakeholders to gather and address feedback about NDC deployments What were the major findings? Offer and order management coverage continues to increase: 80% of NDC-certified airlines have implemented both offer and order management functionalities NDC is much more than just post-booking ancillaries: 70% of NDC certified airlines are using the schemas to sell both flights and ancillaries (bundled and unbundled) 9 airlines are already live on 17.2 schemas: Implementers are now able to leverage and support latest releases quickly The main areas identified as requiring specific focus are servicing, disruption management, payment and consistency of key workflows What s next for 2018? Last year's NDC advances sets the stage for wider adoption. The next phase is focused on driving a critical mass of NDC transactions. The focus for 2018 will therefore be on adoption across the travel value chain and implementation support. 1 2018 International Air Transport Association. All rights reserved.
Introduction New Distribution Capability (NDC) enables the travel industry to transform the way airline products are retailed through the development of a modern, XML-based data transmission standard (NDC Standard) for communications between airlines and travel agents. The NDC Standard is open to any third party, intermediary, IT provider, IATA and non-iata member, to implement and use. Since 2013, IATA has been delivering a yearly pilot report describing the experience of the participants during the NDC implementation process. Many more stakeholders are now focusing on deployments and IATA continues to listen and observe, report findings and capture lessons learned from those who are willing to share. It is hoped that this document will support industry working groups and stakeholders as they validate and enhance NDC business requirements and the related schemas. As the NDC program develops, it is becoming more and more apparent that there are multiple paths to NDC deployment. Each airline has its own commercial and distribution strategy and different expectations from the NDC standard. At the end of 2017, 50 airlines had implemented NDC in a live environment. This new edition will focus on the airlines that have deployed NDC in a live environment, with transactions in production including deployments that started in 2015 and 2016 as well as on the new entrants that joined in 2017. The document is divided into 4 sections: 1. Who is implementing NDC? This section introduces the different actors deploying NDC. 2. What was deployed in the past 3 years? This section presents key figures of the 2015, 2016 and 2017 deployments. 3. What were the major findings? This section gives a summary of the main findings and areas of improvement identified by implementers. 4. What is coming next? This section gives insights into the deployment focus for 2018. General Disclaimer: IATA has taken all reasonable care in producing and publishing the information contained in this NDC deployment report. All information contained herein has been obtained through the consent of NDC deployment participants. The report is by no means a comprehensive list of all NDC implementations in the industry. The report displays up-to-date information as of 31 st December 2017. 2 2018 International Air Transport Association. All rights reserved.
1. Who is implementing NDC? Since June 2016, all NDC entities have been displayed in the NDC Registry at www.iata.org/ndc-registry. This registry contains all NDC actors that went through the NDC Certification program. The purpose of the NDC Certification Program is to confirm the scope and level of a particular entity s capability to receive and send NDC messages. The program validates that the structure of the applicant s NDC messages accurately follows the relevant version of the NDC schemas. Any airline that deploys an NDC API or any seller or aggregator that consumes these APIs can become NDC certified. Any IT provider that offers NDC products and services for airlines and distributors can become NDC capable. Overview At yearend 2017, the NDC registry comprised 117 entities that had been granted a level of certification, up from 43 at the time the registry was launched in June 2016. The table below shows the trend in NDC adoption over the last two years: Entity Certification as of 30 th June 2016 Certification as of 31 st Dec 2017 Airlines 21 50 Aggregators 4 14 Sellers 1 3 12 IT Providers 15 41 Airlines At the end of 2017, 50 airlines had deployed NDC, up from 27 airlines a year earlier. Deploying NDC successfully in production means that passengers were able to complete a booking through a travel agent using the NDC standard (minimum version of NDC Schema 1.1.*). These airlines represented approximately 49% of IATA member passengers boarded. The current average number of deployments is around 2 airlines per month and is increasing. The table below shows an overview of all the airlines with NDC capabilities by region and by scope of deployment. Geographically, activity is strongest in Europe (23 airlines) and North Asia (11 airlines), regions in which 70% of NDC deployments are taking place. Africa and Middle East regions and the Americas are following with 8 and 6 airlines, respectively, while the Africa region is lagging. The Asia-Pacific region is progressing more slowly but celebrated its first deployment in 2017 (Korean Air). We expect to see an increase of deployments in this region in 2018. 1 Travel agents do not need to be certified. When the travel agents chose to connect directly to the airline, they can become certified. However, in the large majority of cases, they will access content through an intermediary (aggregator) and in this instance they will not need to be certified at all. 3 2018 International Air Transport Association. All rights reserved.
As displayed in the table below, the airlines adopting NDC represent a mix of carriers of various sizes and business models, ranging from large- to mid-size carriers including some low cost airlines. Region Airline NDC Deployment Year IATA Code Certification Level Europe Aegean Airlines 2017 A3 Offer Management Europe Aer Lingus 2016 EI Post Booking Ancillaries Europe Air Austral 2017 UU Offer & Order Management Americas Air Canada 2017 AC Offer & Order Management North Asia Air China Limited 2015 CA Offer & Order Management Europe Air France 2017 AF Offer & Order Management Americas American Airlines 2015 AA Offer & Order Management Europe APG Airlines 2017 GP Offer & Order Management Europe Austrian Airlines 2017 OS Offer & Order Management Europe British Airways 2015 BA Offer & Order Management Europe Brussels Airlines 2017 SN Offer & Order Management North Asia China Eastern Airlines 2016 MU Offer & Order Management North Asia China Southern Airlines 2015 CZ Offer & Order Management North Asia Colorful Guizhou Airlines 2017 GY Offer & Order Management Europe Condor Flugdienst GmbH 2016 DE Offer & Order Management AME Emirates Airline 2016 EK Offer Management AME Ethiopian Airlines 2017 ET Post Booking Ancillaries AME Etihad Airways P.J.S.C. 2017 EY Post Booking Ancillaries Europe Finnair 2017 AY Offer & Order Management Europe Flybe 2016 BE Offer & Order Management AME flydubai 2016 FZ Offer & Order Management AME Fly Egypt 2017 FT Offer & Order Management Americas Gol Linhas Aereas Inteligentes 2015 G3 Offer & Order Management North Asia Hainan Airlines 2015 HU Offer & Order Management North Asia Hong Kong Airlines Limited 2016 HX Offer & Order Management Europe Iberia L.A.E S.A. Operadora, Sociedad Unipersonal 2016 IB Offer & Order Management Europe Iberia Express 2016 I2 Offer & Order Management Americas InselAir 2015 7I Offer & Order Management North Asia Jiangxi Air Co. Ltd 2016 RY Offer Management Europe KLM Royal Dutch Airlines 2017 KL Offer & Order Management Asia Pacific Korean Air 2017 KE Post Booking Ancillaries Europe Lufthansa 2016 LH Offer & Order Management Europe Olympic Air 2015 OA Offer Management Europe Public Joint Stock Company Aeroflot - Russian Airlines 2017 SU Offer & Order Management 4 2018 International Air Transport Association. All rights reserved.
Region Airline NDC Deployment Year IATA Code Certification Level AME Qatar Airways 2015 QR Offer & Order Management AME Rotana Jet Aviation 2015 RG Offer & Order Management Europe S7 Airlines 2016 S7 Offer & Order Management AME Saudi Arabian Airlines 2017 SV Offer & Order Management North Asia Shandong Airlines Co., LTD 2015 SC Offer & Order Management North Asia Shenzhen Airlines 2016 ZH Offer & Order Management North Asia Sichuan Airlines, Co. Ltd. 2017 3U Offer & Order Management Europe SunExpress Deutschland GmbH 2017 XG Offer & Order Management Europe SunExpress GüneÅŸ Ekspres Havacilik A.Åž. 2017 XQ Offer & Order Management Europe Swiss International Air Lines 2017 LX Offer & Order Management Europe Thomas Cook Airlines Belgium 2016 MT Offer & Order Management Europe Thomas Cook Airlines Limited of Manchester 2016 HQ Offer & Order Management Europe Turkish Airlines 2017 TK Post Booking Ancillaries Americas United Airlines 2017 UA Offer & Order Management Americas WestJet Airlines 2017 WS Offer Management North Asia Xiamen Airlines 2016 MF Offer & Order Management Sellers On the sellers side, the NDC certification registry now includes 12 entities that have deployed NDC successfully. These represent a wide spectrum of stakeholders from traditional travel agencies to online travel agents (Ctrip, Logitravel Group). On the business travel s side, 4 Travel Management companies (Hogg Robinson Group, Click Travel, Club Travel, WTMC) are listed in the registry. The registry is not an exhaustive list of all travel agents connected to airlines APIs but it gives a good picture of the overall NDC ecosystem and the different players willing to embark on an NDC journey with one or more airlines. It is also to be noted that aggregators can be connected to many travel agents that are not displayed as single entities in the NDC registry simply because they do not need to be certified. Sellers are starting to see NDC as an enabler to help them be more customer focused, to make selling airline ancillary products more efficient and to better compete with airline websites. As an example, Hogg Robinson Group recently published a video 2 explaining the benefits of NDC to their customers. 2 https://www.linkedin.com/feed/update/urn:li:activity:6348560094384451586 5 2018 International Air Transport Association. All rights reserved.
System Providers To date 55 system providers have completed the NDC certification process and implemented solutions using the NDC Standard. Of those 55 entities 41 are IT providers and 14 aggregators. The landscape of system providers is diverse and composed of legacy players and new entrants including 5 start-ups 3. The number of IT Providers with live implemented solutions has almost doubled in one year (from 12 at the end of 2016 to 22 in 2017). The same trend is apparent on the aggregators side (from 7 to 14). In 2016 and 2017, IATA commissioned Sia Partners to carry out a study of the various IT solutions available based on the solutions certified in the NDC registry. The results of this study formed the first NDC Solutions White Paper 4 and NDC solutions profile cards 5 which give an overview of the different solutions available on the market. The following table shows the NDC partnerships between airlines and IT providers that have deployed in a live environment 6 : IT Provider Name Airlines Technology Private Limited Amadeus IT Group S.A. APG ATPCO / SITA Caravelo DXC Technology Farelogix, Inc. Wintelia Technology Company Limited JR Technologies IBS Software Services Private Limited Indra Sistemas S.A. Maureva Ltd Navitaire On Travel Solutions Limited NDC Airlines Partners flydubai; American Airlines; British Airways; Condor Flugdienst GmbH; Olympic Air; Thomas Cook Airlines Belgium; Thomas Cook Airlines Limited of Manchester; WestJet Airlines Finnair; Saudi Arabian Airlines APG Airlines Air Canada Condor Flugdienst GmbH; Finnair; Thomas Cook Airlines Belgium; Thomas Cook Airlines Limited of Manchester Flybe Aegean Airlines; American Airlines; Austrian Airlines; Brussels Airlines; Emirates Airlines; Lufthansa; Olympic Air; Qatar Airways; Swiss International Air Lines; United Airlines; Westjet Airlines Colorful Guizhou Airlines British Airways; Iberia; InselAir SunExpress Deutschland GmbH; SunExpress Güneş Ekspres Havacilik A.Ş. Iberia Express Air Austral Gol Linhas Aereas Inteligentes S7 Airlines 3 Startups as per the NDC Certification Program s terms and conditions are defined as a newly formed company between 1-3 years in business and with less than 5 employees. 4 NDC Solutions White Paper - (pdf) (Oct 2017): http://www.iata.org/whatwedo/airlinedistribution/ndc/documents/ndc-solutions-wp.pdf 5 http://www.iata.org/whatwedo/airline-distribution/ndc/pages/ndc-solutions.aspx 6 Public partnerships as per the NDC Registry: http://www.iata.org/whatwedo/airlinedistribution/ndc/pages/registry.aspx 6 2018 International Air Transport Association. All rights reserved.
Pribas GmbH Proavos IT Provider Name Quadlabs Technologies Pvt Ltd RedApplenet Sabre Airline Solutions Shanghai Aqueduct Information Technology Co., Ltd TPConnects Travelsky NDC Airlines Partners Condor Flugdienst GmbH; Thomas Cook Airlines Belgium; Thomas Cook Airlines Limited of Manchester Fly Egypt British Airways Jiangxi Air Co. Ltd Ethiopian Airlines; Etihad Airways P.J.S.C. China Eastern Airlines Austrian Airlines; British Airways; Brussels Airlines; Lufthansa; Rotana Jet Aviation; Swiss International Air Lines; flydubai; Saudi Arabian Airlines Air China Limited; Hainan Airlines; Hong Kong Airlines Limited; Shandong Airlines Co., LTD; Shenzhen Airlines; Sichuan Airlines, Co. Ltd.; Xiamen Airlines The following table shows the NDC partnerships between airlines and aggregators that have deployed in a live environment 7 : Aggregator Name AirGateway Amadeus IT Group S.A. Atriis Technologies Limited Flyiin Marco Polo Technology Co., Ltd Reserve Sabre Travel Network Skyscanner Ltd TOPAS Co. Ltd. TPConnects Travelfusion Ltd. Travelport WTMC XML Travelgate British Airways British Airways NDC Airlines Partners Austrian Airlines; Brussels Airlines; Lufthansa; Swiss International Air Lines; British Airways Austrian Airlines; Brussels Airlines; Iberia; Lufthansa; Swiss International Air Lines Emirates Airline Gol Linhas Aereas Inteligentes Ethiopian Airlines; Etihad Airways P.J.S.C. British Airways; Finnair Korean Air Austrian Airlines; British Airways; Brussels Airlines; flydubai; Lufthansa; Rotana Jet Aviation; Swiss International Air Lines; Qatar Airways; Saudi Arabian Airways Air France; British Airways; Flybe; Iberia; KLM Royal Dutch Airlines Undisclosed Undisclosed Iberia Express 7 Public partnerships as per the NDC Registry: http://www.iata.org/whatwedo/airlinedistribution/ndc/pages/registry.aspx 7 2018 International Air Transport Association. All rights reserved.
2. What was deployed in the past 3 years? Airlines now have the ability to share insights and information regarding their NDC deployments via 4 channels: 1- Case studies: The airlines success stories are being documented in case studies that are available online at www.iata.org/ndc under the Info tab. 10 entities have already shared their implementation journey and lessons learned. 2- NDC Airlines website 8 : NDC live airlines explaining the strategy, benefits and scope of their implementation. 3- At IATA NDC events: World Passenger Symposium 9, IATA Business Travel Summit 10 and NDC Implementers forum 11. 4- IATA NDC Developer Portal 12 : in 2018, IATA will start leveraging this platform to better support implementers. This chapter summarizes the main findings at an aggregated level. Scope of deployments Figures 1, 2 and 3 depict the scope of deployments of airlines with respect to two areas: The coverage of the NDC messages in the 3 levels aligned to the NDC certification: post booking ancillaries, offer management, and offer and order management. Offer management is the process of receiving requests for an airline s products and services, constructing corresponding offers and sending those offers back to the seller. Order management is the process of accepting, amending, tracking and fulfilling shopping requests for an airline s products and services (including creating PNR or orders and processing payment). Post booking ancillary is the purchase of an ancillary after an order has been confirmed, however the order may or may not be using the NDC schema. The extent to which the NDC messages are being used to offer the airlines products and services: ancillaries only, flights only or both flights and ancillaries. 8 http://www.iata.org/whatwedo/airline-distribution/ndc/pages/ndc-airlines.aspx 9 http://www.iata.org/events/passenger-symposium/pages/index.aspx 10 http://www.iata.org/events/pages/business-travel-summit.aspx 11 http://www.iata.org/whatwedo/airline-distribution/ndc/pages/default.aspx >> Events tab 12 http://ndc.developer.iata.org/ 8 2018 International Air Transport Association. All rights reserved.
Figure 1: Functionalities deployed 2016 vs 2017 (% of airlines) 2016 (27 Airlines) 2017 (50 Airlines) Post Booking Ancillaries 4% 10% Offer Management 22% 10% Offer and Order Management 74% 80% Figure 2: Functionalities deployed in 2017 (number of airlines) 5 50 Live Airlines 5 Offer Management Post Booking Ancillaries Offer & Order Management 40 Figure 3: Scope of deployment (% of airlines) 20% 10% 50 Live Airlines Ancillaries only Flights & ancillaries Flights only 70% 9 2018 International Air Transport Association. All rights reserved.
Schema versions Figures 4 and 5 show the different versions of the schemas that have been certified since 2016. Figure 4: Schema versions deployed 2016 vs 2017 (% of airlines) 2016 (27 Airlines) 2017 (50 Airlines) NDC 1.1.3 38% 17% PADIS Publication 15.2 50% 44% PADIS Publication 16.1 4% 9% PADIS Publication 16.2 8% 9% PADIS Publication 17.1-6% PADIS Publication 17.2-14% Figure 5: Schema versions deployed 2016 vs 2017 (number of airlines) 30 28 25 20 15 14 10 10 11 9 6 6 5 4 1 2 0 NDC 1.1.3 PADIS Publication 15.2 PADIS Publication 16.1 PADIS Publication 16.2 PADIS Publication 17.1 PADIS Publication 17.2 2016 (27 Airlines) 2017 (50 Airlines) 10 2018 International Air Transport Association. All rights reserved.
Services and Rich Content Figures 6 and 7 display the type of services deployed by airlines in 2017 and the extent to which the NDC schema is used to push out rich content. Figure 6: Services deployed by airlines in 2016 vs 2017 Air Related Other Products Type of services No. of Airlines in 2016 No. of Airlines in 2017 Seats 14 25 Baggage related 16 27 Change Fees 1 6 Travel Insurance 2 3 Car services 2 2 Meals 6 12 Wi-Fi 1 3 Lounge Access 2 5 Special Services (Wheel Chair, Meet and Assist) 2 5 Figure 7: Rich content coverage (% of airlines) 36% 42% Not in use 50 Live Pending confirmation Airlines Rich content 22% 11 2018 International Air Transport Association. All rights reserved.
3. What were the major findings? This section concentrates on the learnings that have been identified after analyzing the data and information shared by the participants. This material is critical in order for IATA to provide proper guidance and best practices to the industry and future NDC deployments participants. Indeed, the learnings provide direct feedback to the various trainings, education materials and feed the continuous improvement cycle of the standard and its implementation guide. Scope of NDC deployments A larger number of airlines are implementing the full set of NDC messages with both offer and order management messages and functionalities. Indeed, 80% of airlines deployed an offer and order management functionality in 2017 (see figures 1 and 2 in previous section). Compared to 2016, 3 airlines enhanced their NDC capabilities from just offer management to both offer and order management (American Airlines, Lufthansa, Qatar Airways). Most of the new entrants in 2017 (17 out of 23) implemented all functionalities of the standard from the very beginning. The remaining 6 airlines implemented post booking ancillaries only (4) or offer management (2). In terms of usage of the NDC standard, around 70% of airlines are using the NDC messages to provide content about both flights and ancillaries, whereas 10% of airlines distribute only ancillaries and 20% only flights using the NDC messages (see figure 3 in previous section). A majority of airlines offer ancillaries both a la carte or bundled with a flight, allowing them to generate additional revenue and to offer products and services according to their marketing strategy. While seats and baggage remain the most popular ancillaries deployed, an increasing number of carriers are using NDC messages to offer other products to their customers, such as insurance, car services, lounge access, Wi-Fi, meals, duty free and special services such as wheel chair and Meet and Assist (see figure 6 in previous section). There were no specific new ancillaries deployed using NDC messages in 2017, however, more airlines are confirming that they use NDC messages to offer their full list of services. In 2017, IATA published Taking the Reins 13, the Story of How Passionate Travel Managers Created a Vision of the Future of Business Travel Aviation. This extensive report documents the results of the 2017 NDC Propathon, a process that led to the generation of 60 ideas for airline products and services that an NDC environment could enable. Airlines are currently looking into these ideas for implementation in the near future. Rich content is being pushed by more than 42% of airlines in the form of images and videos, allowing them to display comprehensive content and therefore differentiate their products from their competitors (see figure 7 on previous section). However, personalization and dynamic pricing remain for the moment used by a small number of airlines. IATA expects these two areas to grow in the near future. 13 http://www.iata.org/whatwedo/airline-distribution/ndc/documents/ndc-taking-the-reins.pdf 12 2018 International Air Transport Association. All rights reserved.
It is now becoming clear that carriers embracing NDC have a much broader vision of the business benefits and are embarking upon more complex NDC projects. Airlines are also now ready to focus their deployments on finding strategies to increase their volumes of NDC transactions. NDC schemas In 2016, some NDC implementers had highlighted that there was some ambiguity in the structure and elements of the schemas and that the messages needed more extended attributes. In 2017, this feedback has been addressed for all NDC messages. Where there used to be various possibilities to implement the same message, these have been reduced and converged into one single interpretation of the schema. These changes have been available since version PADIS 17.2 of the NDC schema, released early September 2017. This version of the schema is a major step forward and includes several enhancements. It has been largely welcomed and endorsed publicly by the entire industry. IATA encourages all participants to move to this new version of the schema or any version published afterwards. A total of 13 airlines have already implemented the latest version of the schema (17.1 and/or 17.2). At the time of this report, we count 9 airlines with live implementations using PADIS 17.2 schema (see figures 4 and 5 in previous section). Out of those 9 airlines, 6 are new entrants in 2017 and 3 have upgraded their API. Additionally, 5 IT providers and 2 aggregators already provide solutions in 17.2. This shows that implementers are now able to leverage and support latest schema releases more quickly than before. The fact that NDC schema versions are being implemented more quickly, combined with IT solutions becoming more mature, is greatly increasing the speed to market. For example, the NDC aggregator Skyscanner recently published a guide that explains how an airline can deploy an NDC API and benefit from upsells within 30 days. 14 Some areas of improvement identified by implementers In 2017, IATA facilitated 3 NDC implementers forums. These forums are led by the IATA NDC Program and target stakeholders that have already begun their NDC implementation in order to share experiences and promote interoperability. The goal of these sessions is to provide an opportunity to raise questions around implementation, encourage best-practice sharing among peers when implementing NDC, and review the different technical solutions and workflows. Out of the different sessions, 3 main recurrent implementation topics have been highlighted for improvement that should facilitate the adoption of NDC in the future: payment, servicing/disruption management and consistency of key workflows. On payment, the discussions have been around message orchestration for 3DSecure and how to allow payment fees to be calculated with the NDC schema. IATA is currently working on consolidating payment topics to be addressed by the various working groups in 2018. 14 Skyscanner and IATA Partner to Deliver a Guide to NDC: Enabling Airlines to Benefit from Upsells in 30 days: https://partners.skyscanner.net/news-case-studies/thought-leadership/skyscanner-and-iatapartner-to-deliver-a-guide-to-ndc 13 2018 International Air Transport Association. All rights reserved.
How to manage disruptions with the current NDC schema was also raised as an area for improvement. The specific use of OrderChangeNotif message is currently under discussion and how implementers expect related flows to function (e.g. involuntary changes pushed by the airline). A similar topic was raised regarding consistent implementation of message flows and if the ability to perform a certain task in multiple ways could be detrimental to the adoption of the standard or not. The current NDC implementation guide 15 provides guidance on the different use cases. The work in this area for 2018 will be to identify best practices for message flows covering key offer and order management scenarios. Integration with BSP With NDC, the airline may want to benefit or continue benefiting from the current BSP (Billing and Settlement Plan) designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines. By doing that, both the airline and its agents will gain the BSP experience of simplified reporting and consolidated billing for both NDC sales and traditional BSP sales as well as simplified collection and settlement process for all transactions issued, secured by improved financial control for the airline (including streamlined risk management features with the NewGen ISS 16 program, cash collection, payment of commissions, preparation of remittance files or sales reports). This is possible by sending one daily file covering global sales to the IATA NDCLink or WebLink 17 service or report it real-time per transaction to IATA Financial Gateway 18 product (IFG). NDC has a direct impact on the end-to-end process for airline indirect distribution. Over the past 2 years, IATA has been working to ensure that the BSP and other IATA solutions are making integration seamless for the industry and we already count 3 airlines in 13 BSPs using NDCLink with benefits for both airlines and travel agents. 15 http://www.iata.org/whatwedo/airline-distribution/ndc/documents/ndc-implementation-guide.zip 16 http://www.iata.org/whatwedo/airline-distribution/pages/newgen-iss.aspx 17 http://www.iata.org/services/finance/pages/weblink.aspx 18 http://www.iata.org/services/finance/pages/iata-financial-gateway.aspx 14 2018 International Air Transport Association. All rights reserved.
4. What is coming next? Until now, the NDC program strategy has been to drive airline capability. This means an airline s ability to technically exchange at least one set of messages with a partner using the NDC standard. With the number of airlines that are NDC live representing close to 50% of total passengers carried by IATA member airlines, the time has come for the program to shift its priority to building a critical mass of transactions. The NDC strategy in 2018 and onwards will therefore evolve around the following areas: Support implementation Engage further all value chain members Shift from capability to volumes Drive critical mass In 2018, IATA s main priorities will be to support implementation delivery and stimulate the value chain. On the airlines side, IATA is targeting that by yearend the number of NDC airlines will account for at least 55% of IATA total passenger carried. More NDC implementers forums will take place with the aim of reducing barriers to implementation identified in 2017 in the following areas: payments, disruption and consistent implementation of NDC messages and any newly identified areas. Some work will also be done in improving User Interfaces and in identifying possible gaps in the area of travel agents back office reporting. As much as possible, IATA will continue to capture the different deployment paths and ensure that value is demonstrated with live examples of main features (offers, personalization, dynamic pricing, services, etc.). IATA will additionally concentrate on facilitating matchmaking of players for new and existing deployments. 15 2018 International Air Transport Association. All rights reserved.